Ecolab Set to Report Q4 Earnings: What's in Store for the Stock?

Ecolab, Inc. ECL is scheduled to report fourth-quarter 2024 results on Feb. 11, 2025, before the opening bell.In the last reported quarter, the company’s earnings per share (EPS) of $1.83 surpassed the Zacks Consensus Estimate by 0.6%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 0.79%, on average.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Let’s see how things have shaped up for Ecolab prior to this announcement.Global IndustrialThe Global Industrial segment, comprising the Water, Food & Beverage, Paper and Downstream units, witnessed a sales uptick in the third quarter of 2024. Per management, the Global Industrial segment’s growth was driven by accelerating Water sales growth. Water’s performance was led by strong growth in downstream and light water. We are optimistic about the continued strength in Ecolab’s Water business and expect it to have significantly boosted the company’s fourth-quarter revenues as well.In November 2024, Ecolab announced the acquisition of Barclay Water Management. The acquisition enhances Ecolab's water treatment capabilities, expands its customer base, and creates cross-selling opportunities. It strengthens Ecolab’s portfolio in key industries, supports sustainable solutions, and aligns with its growth and margin expansion goals.Per management, third-quarter Food & Beverage sales reflected good new business wins. Paper sales were stable compared to the year-ago quarter’s performance. This is likely to have continued in the to-be-reported quarter as well.The Zacks Consensus Estimate for the fourth-quarter Global Industrial segment revenues is currently pegged at $2 billion, indicating an uptick of 7.9% from the year-ago quarter’s reported figure.Global Institutional & SpecialtyEcolab’s Global Institutional & Specialty segment recorded strong growth in the last reported quarter, courtesy of the company’s performance in the Institutional and Specialty divisions. Per the third-quarter earnings call, management commented on the Institutional and Specialty business’ strong performance and margin expansion. The segment delivered strong organic sales growth on top of last year's double-digit gains.This trend is likely to have continued in the to-be-reported quarter as well.Per management, the main driver of robust performance in the Institutional and Specialty segment is that the company is helping its customers with labor automation. Ecolab’s chemical solutions, machine programs and digital technologies are helping its restaurant and hotel customers serve more guests better while using less labor. Additionally, Ecolab’s segmental revenues for the to-be-reported quarter are also likely to have benefited from new business wins.The Zacks Consensus Estimate for the fourth-quarter Global Institutional & Specialty segment revenues is currently pegged at $1.36 billion, implying an uptick of 7.2% from the year-ago quarter’s reported figure.Other Factors at WorkIn the third-quarter Pest Elimination’s organic sales (a component of Ecolab’s broader Other segment) witnessed growth of 9%. Sustained strong demand for Pest Elimination in commercial businesses is likely to have driven the segment’s revenues in the to-be-reported quarter as well.Per management, during the third quarter, robust performance was seen in specific high-tech and clean-tech subsegments, particularly data center cooling, microelectronics, and water circularity solutions. These areas benefited from Ecolab’s innovative technologies and enhanced value pricing strategies, despite broader economic challenges in some industrial markets.The company’s continued investments in digital technologies and customer penetration opportunities, particularly under the One Ecolab initiative, might have further bolstered growth in the to-be-reported quarter.Ecolab Inc. Price and EPS Surprise Ecolab Inc. price-eps-surprise | Ecolab Inc. QuoteThe Estimate PictureFor fourth-quarter 2024, the Zacks Consensus Estimate of $3.97 billion for total revenues implies an improvement of 0.9% from the prior-year quarter’s reported figure.The consensus estimate for EPS is pegged at $1.77, implying an improvement of 14.2% from the prior-year period’s reported number.What Our Model SuggestsPer our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below.Earnings ESP: Ecolab has an Earnings ESP of -3.36%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #3.Stocks Worth a LookHere are some medical stocks worth considering as these have the right combination of elements to post earnings beat this reporting cycle.Globus Medical GMED has an Earnings ESP of +3.95% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The company expects to release its fourth-quarter and full year 2024 results on Feb. 20. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%. The Zacks Consensus Estimate for earnings indicates an improvement of 26.67% from the year-ago reported figure.Merit Medical Systems MMSI has an Earnings ESP of +2.62% and a Zacks Rank #2 at present. The company is slated to release its fourth-quarter and full year 2024 results on Feb. 25.MMSI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.42%. The Zacks Consensus Estimate for earnings indicates an improvement of 2.47% from the year-ago quarter’s figure.Masimo MASI has an Earnings ESP of +4.05% and a Zacks Rank of 2 at present.The company expects to release its fourth-quarter and full year 2024 results on Feb. 25. MASI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.1%.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. 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